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Maximum Amount of Guaranteed Loans

  1. Basically, the maximum amount of guaranteed loans for a single enterprise is NT$120 million under the Indirect Credit Guarantee and Direct Credit Guarantee. However, for some guaranteed loans, additional amount is allowed, e.g. ; for Portfolio Credit Guarantee, an additional NT$150 million is added; for Co-guarantee programs, additional amounts are added vary from the programs.
  2. Related firms are subject to a maximum amount of NT$120 million of guaranteed loans. Two firms are defined related if they have the same responsible persons or their responsible persons are different but are spouses to each other.
  3. To help SMEs against the COVID-19 crisis, the guaranteed loan limit is raised from NT$120 million to NT$150 million by Dec. 31, 2021.

Guarantee Fee

  1. For credit guarantee programs supported by SME fund, the rate of guarantee fee varies from 0.375% to 1.375% per annum of the guaranteed amount. The guarantee fees are payable by guaranteed enterprises.
  2. For credit guarantee programs supported by separate funds, the guarantee fees and the payees vary in accordance with the contents of the programs.

Collateral and Guarantor

  1. The Taiwan SMEG does not take any collateral for its guarantee. However, if a loan is provided to purchase land, equipment or factories, the financial institution is required take them as collateral.
  2. The responsible persons registered in the enterprise's operating licenses and other persons responsible for its practical operations, if any, have to be the joint guarantors. The financial institution can take more guarantors, if necessary.

Guarantee Coverage

It is the policy of the Taiwan SMEG to make partial guarantee. The guarantee coverage ranges from 60~95% of the guaranteed credit under the Indirect Guarantee.
For Portfolio Credit Guarantee program, the Taiwan SMEG provides 100% guarantees. As to the Direct Guarantee, the guarantee coverage is up to 90%.

Sources of Income

The sources of the Taiwan SMEG's income mainly consist of the interest of donated funds and credit guarantee fees collected.